Why do I need Workmen Compensation Insurance?

A Worker’s compensation is awarded to employees who suffer an accident or injury in their workplace or as a result of their employment duties.

Workmen compensation insurance allows companies to provide financial assistance to employees in this situation without compromising their financials.

It is an essential element for any organization with employees, but mainly for those in high-risk industries.

Dubai might well be the city of innovation, but for anyone who has turned a corner and seen a structure appear as if out of thin air, it is also the city of buildings. In 2017 Gulf News reported that over 26,000 buildings were under construction across town, ranging from villas to industrial plots and 1,238 multi-stored buildings.
Our booming construction industry shows no sign of slowing down; as a matter of fact, it is employing nearly 1 million migrant workers who routinely spend their days scaling new heights and handling complex machinery.

But it isn’t just the construction industry, for those of us whose days revolve more around computers and desks, we can’t fail to have marveled at those with more ‘high-risk’ jobs from the window cleaners perched hundreds of feet up to the delivery drivers who rush through traffic on bikes to make their deadlines.
Some jobs have a higher level of risk associated with the work (and no a paper cut from a printer jam doesn’t count), and that is why it is so essential that there be a recourse for workers compensation and therefore also for workers compensation insurance.

So what is workers compensation?

If an individual is injured due to an accident at their workplace or in the course of fulfilling their employment duties, they are entitled to receive an appropriate amount of compensation, usually related to the extent of the injury sustained and any required medical treatment. Almost every developed nation in the world shares a similar commitment to this practice, and most governments have passed laws to ensure that every employer or company understands their responsibility and liability to their employees.

How does insurance come into it?

Worker’s compensation insurance or workmen’s compensation insurance is necessarily a form of insurance, employers can adopt to provide coverage in the case of work-related accidents or deaths incurred by their employees.

As well as offering a resource to ensure that injured employees can receive necessary treatment, it is designed to assist organizations, particularly those in high-risk industries, with meeting whatever financial assistance might be required, without causing potentially devastating financial trauma. Much like other forms of insurance, we might retain, to protect against theft or damage, for instance, it is a safeguard that against the things we can’t anticipate or see coming.

Who should have workmen compensation insurance?

In short, anyone who manages or owns a business. No matter what the size or purpose of your business, it is impossible to foresee accidents and even the most trivial of workplace injuries could incur a cost that could be damaging to your bottom line.
According to the International Labour Organisation, they estimate that over 317 million workplace injuries occur annually around the world. And in 2013, the Al Ain Department of Environment, Health and Safety reported 4,450 accidents; which helps you understand how even a trip and fall could result in high medical bills, not to mention lost productivity.

That said, there are industries for which workmen compensation insurance is even more important, mainly those related to transport, manufacturing, construction, engineering, and manual service deliveries. These sectors will always carry a much higher risk level of accident or injury.

Is it essential in Dubai?

Dubai’s push to become a city of inclusion and opportunity hasn’t just been limited to the physical ambitions of our visionary leaders, they have also taken significant steps (often well ahead of other regional counterparts) to protect workers from every country and ensure that their rights and wellbeing is assured. UAE Federal Law No.8 of 1980 makes it mandatory for an employer to provide compensation to an employee for any accident or injury resulting from their employment, and in certain free zones around the city, worker’s compensation insurance is essential to issue a trading license.

So how does it work?

Company owners or managers can seek advice on the most appropriate form of workers compensation insurance for their business.
The evaluation will focus on the designation of their employees to determine risk factors; for instance, general office versus the more physical risks in more manual based organizations. The number of administrative or manual staff will affect the premiums of the insurance proposed and your company will have to provide a loss record from previous years.
It is worth noting that natural diseases will be the principal exclusion across all policies, but there may also be one for the off-shore risks that could be included at an additional premium.

So if your company isn’t protected properly, get in touch with one of our expert team and get a workers compensation insurance quote today.

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Aqeed is on a mission to help you become better at everything related to insurance. The articles are meant to enrich your knowledge about insurance so that you make the right choices. From the decisions you make to the options you take, you are In Sure Hands.

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Aqeed is an insurance technology company that aims to make insurance simple, transparent, and accessible.
We are on a mission to help you become better at everything related to insurance. From the decisions you make to the choices you take, you are InSure Hands.
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